Banks create cash by using lending extra reserves to buyers and businesses. This, in turn, finally provides greater to money in circulation as dollars are deposited and loaned again.
The Fed does not really print money. This is treated through the Treasury Department's Bureau of Engraving and Printing.
<h3>How is money created in the economy?</h3>
Most of the money in our economy is created by using banks, in the form of financial institution deposits – the numbers that show up in your account. Banks create new money each time they make loans. 97% of the money in the financial system today exists as financial institution deposits, at the same time as simply 3% is physical cash.
<h3>How do commercial banks create money?</h3>
Commercial banks make cash through imparting and earning activity from loans such as mortgages, auto loans, business loans, and personal loans. Customer deposits provide banks with the capital to make these loans.
Learn more about creating money here:
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brainly.com/question/3625390</h3><h3 /><h3>#SPJ4</h3>
Answer:
$480,000
Explanation:
Calculation to determine what total relevant costs to make the part internally are
First step is to calculate Relevant cost per unit:
Relevant cost per unit:
Direct materials $6
Direct labor $24
Variable manufacturing overhead $12
Fixed manufacturing overhead ($15 × 0.40) $6
Relevant manufacturing cost $48
Now let determine the Total relevant costs to make the part internally
Total relevant costs to take the part internally=($48 × 10,000)
Total relevant costs to make the part internally = $480,000
Therefore total relevant costs to make the part internally are $480,000
Answer:
The correct option here is C) Nutritional labeling and education act.
Explanation:
NLEA or commonly know as nutritional labeling and education act is a new rule passed by the government , which requires the sellers or marketers of a product to show all the information regarding number of grams of fat ( whether trans fat, saturated or saturated fat ) on the packaging of the product.
Answer:
$221,500
Explanation:
The computation of the amount of the goodwill is shown below:
Goodwill = Acquiring value - fair market value of all assets
where,
Acquiring value = $502,000
And, the fair market value of all assets is
= Account receivable market value + inventory market value + fixed assets market value + other assets market value
= $35,000 + $183,000 + $46,500 + $16,000
= $280,500
So, the goodwill is
= $502,000 - $280,500
= $221,500
Answer:
D.
Explanation:
To accrue means to grow or to accumulate over time. In accrual accounting, if the revenue recognition criteria are met in the current period, revenue will need to be accrued in the current accounting period even if cash will not been received until a later accounting period.
Accrued revenues is a type of account that require adjustment, to register the unrecorded revenues that have been earned and for which cash has not yet to be received.
The accrual journal entry to record the sale involves a debit to the accounts receivable account and a credit to sales revenue. If the sale is for cash, debit cash instead. The revenue earned will be reported as part of sales revenue in the income statement for the current accounting period.
It is the same for accrued revenue and for revenue on account.
